Answer Happy

Cheyenne holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Stock Andalusian Limited (AL) Zaxatti Enterprises (ZE) Water and Power Co. (WPC) Flitcom Corp. (FC) Investment Beta $1,750 1.00 $1,000 1.30 $750 1.15 $1,500 0.30 Andalusian Limited Zaxatti Enterprises Flitcom Corp. Water and Power Co. Standard Deviation 9.00% 11.50% 20.00% 19.50% Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfollo? Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Zaxatti Enterprises Andalusian Limited Fitcom Corp. Water and Power Co. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Cheyenne's portfolio's beta and required return? Fill in the following table:
Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Zaxatti Enterprises Andalusian Limited Flitcom Corp. Water and Power Co. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Cheyenne's portfolio's beta and required return? Fill in the following table: Cheyenne's portfolio Beta Required Return